Website Closers® presents a CPG Company that both designs and sells smart products to consumers and businesses – all products are engineered in-house for use in many different applications. With interest in smart home technology booming, this company has become a leader in this niche for their expert knowledge of system automation, and their ability to design and develop home appliances that take the hard work out of regular tasks such as water filtration and lawn care.
A fully trademarked brand, the company employs their own in-house manufacturer with experience in the research and development of these advanced technologies, developed to leverage the Internet of Things (IoT) technology that can be conveniently controlled by Wi-Fi, or by voice or mobile app technology.
Their products are doing well, achieving a 31% Year Over Year growth rate with sales conducted across Amazon and Walmart. Smart home technology is increasingly popular today, integrating fully automated devices to control lighting, heating, ventilation, air conditioning, and security monitors. These products are very popular, not just with homeowners but also the home construction industry. Smart homes are being constructed more often today because they add value to a property and make them more desirable among home new generations of buyers.
The smart home market is an enormously profitable one, valued at $99.8 billion in 2021 and projected to reach $380.5 billion by 2028, a huge 21% growth rate as IoT continues to experience significant improvements. This growth is also being driven by the rising number of internet users, the increased popularity of home monitoring systems, and increased demand for energy-savings solutions.
Homeowners also love the technology because it’s like having a personal assistant at your home, one who can make it easier to manage day-to-day activities. When you have remote control of home functions, it’s easy to fine-tune everything in your house even when you’re away. This company has recognized these trends and taken full advantage of the popular appeal of the smart home.
They are 100% Proprietary. Focusing mainly on home improvement, lawn and garden care, and an ultrasonic cleaner, the company operates as both a B2B and DTC eCommerce business, selling 90% of its products directly to Amazon’s Vendor Central and Walmart. Since first launching in 2013, their state-of-the-arts home products have been very well received, including their reverse osmosis water filtration system, created for use under the homeowner’s sink; their electric garden tools; a portable air-conditioner with mobile app and Alexa controls; and programmable wall outlets.
The company took their proprietary products a step further by also creating a battery system for their 15 SKUs. Their innovation in creating these products has enabled the company to bring in $6 million in revenue, enjoy gross margins that are consistently at 50%+, and to receive net income that is consistently in the 7 figures.
Their sales platforms are strong. Amazon and Walmart have proven to be excellent platforms for the company’s sales. The brand receives weekly purchase orders valued on average at $100,000+, although it’s not uncommon for orders to be $300,000 and higher.
The company ships weekly to Amazon and can handle 30% more volume in their current 5,000 square foot warehouse. To keep up with demand, the company maintains up to $3 million worth of inventory, with most inventory turning over within 2-3 months.
The company benefits as well from having an experienced team in place. While the current ownership focuses on tasks that include supplier oversight and managing the staff, employees include a Customer Service representative, manager of the Amazon and Walmart accounts, and two warehouse managers who coordinate the packing and shipping of inventory.
Their experience has enabled the company to attract glowing reviews for not just the high quality of their products but also their customer service. They maintain a 4.5 Seller Rating on Amazon.
They have a diverse approach to marketing. The company takes a multifaceted approach to marketing their products, which includes PPC ads on Google and Facebook, an email marketing campaign to drive upsells (the company now has a 10% Repeat Customer Rate, which continues rising), and an SEO program that includes use of popular keywords in product descriptions and a blog on their website.
More innovations are on the way. The company’s app is used for air conditioner control, and they have enjoyed more than 20,000+ downloads, with 2,000+ daily users taking advantage of the app in the summer months. The company is now developing a new version of its popular water filtration system to monitor the daily volume of water being consumed in the household, so the customer can be reminded when the filter is due to be replaced.
Innovation has been a hallmark of this company, and a key reason for their success and high profitability. In making this acquisition, the buyer gets to own the company’s trademark in the U.S., along with their stellar reputation within the home automation industry and their impressive recurring revenues.
With such critically acclaimed products to offer, the company is poised to scale quickly by expanding sales internationally through Amazon’s platforms, expanding the product line to focus on the universal battery system and the app, and partnering with shopping networks and Home Goods Channels to showcase their products.
Contact Website Closers today to learn how this thriving company with smart home technology is also an exceptionally smart investment.
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